Revenue Performance - For the three months ended September 30, 2025, revenue was $158.2 million, a 15% increase from $137.2 million in the same period of 2024[164]. - For the nine months ended September 30, 2025, revenue was $451.4 million, reflecting a 12% increase from $403.1 million in the same period of 2024[164]. - Revenue for the three months ended September 30, 2025, was $158.2 million, up from $137.2 million in 2024, marking an increase of approximately 15.3%[208]. - Total revenue for the nine months ended September 30, 2025, was $451.4 million, a 12% increase from $403.1 million in the same period of 2024[210]. - Network Services revenue increased by 11% to $118.8 million for the three months ended September 30, 2025, compared to $107.4 million in 2024[214]. - Security revenue grew by 30% to $34.0 million for the three months ended September 30, 2025, driven by an increase in Next-Gen WAF revenue[214]. - U.S. revenue for the three months ended September 30, 2025, was $114.2 million, accounting for 72% of total revenue, compared to 76% in the same period of 2024[216]. - International revenue increased by 35% to $44.1 million for the three months ended September 30, 2025, up from $32.8 million in 2024[216]. Net Loss and Financial Health - The net loss for the three months ended September 30, 2025, was $29.5 million, an improvement from a net loss of $38.0 million in the same period of 2024[164]. - The net loss for the nine months ended September 30, 2025, was $106.2 million, compared to a net loss of $125.2 million in the same period of 2024[164]. - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $29.5 million, compared to a loss of $38.0 million in 2024, showing an improvement of approximately 22.1%[208]. - Net loss attributable to common stockholders was (19)% for the three months ended September 30, 2025, an improvement from (27)% in 2024[209]. - The company expects to continue incurring operating losses due to investments and strategic initiatives aimed at business growth[242]. Customer Metrics - The company's 10 largest customers accounted for 32% of revenue in the trailing 12 months ended September 30, 2025, down from 35% in the previous year[165]. - Total customer count decreased from 3,638 in 2024 to 3,223 in 2025, representing a decline of approximately 11.4%[184]. - Enterprise customer count increased from 576 in 2024 to 627 in 2025, indicating a growth of about 8.8%[187]. - Last-twelve months net retention rate improved from 105.3% in 2024 to 105.8% in 2025, reflecting a positive trend in customer retention[189]. Research and Development - Research and development expenses as a percentage of revenue were 26% for the three months ended September 30, 2025, compared to 23% in the same period of 2024[180]. - Research and development expenses for the three months ended September 30, 2025, were $41.4 million, up from $31.9 million in 2024, an increase of approximately 29.5%[208]. - Research and development expenses rose by 30% to $41.4 million for the three months ended September 30, 2025, primarily due to increased stock-based compensation[223]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $121.1 million, compared to $115.3 million in 2024, reflecting an increase of about 5.9%[208]. - Operating expenses totaled $121.1 million for the three months ended September 30, 2025, a 5% increase from $115.3 million in 2024[222]. - General and administrative costs for Q3 2025 were $29.7 million, an increase of $2.5 million, or 9%, compared to Q3 2024[227]. - For the nine months ended September 30, 2025, general and administrative costs decreased to $82.3 million, a reduction of $4.9 million, or 6%, from $87.2 million in the same period of 2024[228]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $72.0 million, primarily due to adjustments for non-cash items[251]. - Cash used in investing activities for the nine months ended September 30, 2025, was $249.2 million, primarily due to $352.1 million in purchases of marketable securities[253]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $3.9 million, primarily from $5.5 million in proceeds from the employee stock purchase plan[255]. - The company recognized an impairment expense of $0.4 million during the nine months ended September 30, 2025, related to non-recurring write-off charges[229]. - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $342.9 million[240]. - The company has not drawn down any amounts on its Senior Secured Credit Facilities Agreement during the nine months ended September 30, 2025[244]. Strategic Initiatives - The company plans to continue investing in its platform and network infrastructure to support revenue growth and customer adoption of its edge cloud delivery and security products[180]. - The company aims to expand its customer base across diverse industry verticals by enhancing product experience and leveraging its partner ecosystem[168]. - The company is focused on international expansion, increasing its presence in select international markets to attract customers outside the United States[175]. - The company emphasizes retaining customers and expanding their usage of its platform, with a focus on additional offerings beyond content delivery and security[172]. Financial Reporting and Compliance - The company prepares its financial statements in accordance with GAAP, requiring estimates and judgments that could significantly affect reported amounts[258]. - There have been no material changes in the company's contractual obligations and commitments from the most recent Annual Report[257]. - The company does not currently engage in hedging activities to reduce potential exposure to currency fluctuations, although it may consider this in the future[262]. - The primary objective of the company's investment activities is to preserve principal while generating income without significantly increasing risk[261].

Market Overview - U.S. stock index futures indicate a cautiously optimistic start for Wall Street, with major index futures showing gains after a challenging week marked by a tech sell-off and economic uncertainties [1][2] - S&P 500 futures and Nasdaq 100 futures are both up approximately 0.3%, while Dow Jones Industrial Average futures reflect a modest increase of about 0.2% [2] Recent Market Performance - On November 6, 2025, all three major U.S. stock indexes closed sharply lower, with the Dow Jones Industrial Average falling by 0.8%, S&P 500 sliding 1.1%, and Nasdaq Composite tumbling 1.9% [3] - The Nasdaq Composite is down 2.8% for the week, S&P 500 off 1.8%, and Dow Jones down approximately 1.4% [3] Economic Context - The ongoing U.S. government shutdown has lasted 38 days, injecting uncertainty into financial markets and delaying the release of crucial economic data [4] - Investors are monitoring private indicators and upcoming economic announcements closely [4] Federal Reserve Insights - Several Federal Reserve speakers, including Vice Chair Philip Jefferson, are scheduled to deliver remarks, which will be scrutinized for hints regarding monetary policy direction [5] Corporate Developments - Tesla's CEO Elon Musk secured shareholder approval for a proposed $1 trillion compensation package, leading to a 1.6% increase in Tesla's shares in premarket trading [8] - Concerns about a potential bubble in AI and stretched valuations for Big Tech are weighing on investor sentiment [7] Earnings Reports and Stock Movements - Cummins Inc. saw shares climb 5.4% after reporting third-quarter adjusted earnings that surpassed analyst estimates [14] - Planet Fitness Inc. jumped 12.6% following better-than-expected third-quarter adjusted earnings [14] - Robinhood reported a significant 129% increase in transaction revenues, driven by over 300% growth in its crypto business [14] - Notable declines were observed for Nvidia (down 3.7%), Microsoft (down 2%), and Amazon (down 2.9%) [9]

Core Insights - Fastly, Inc. (FSLY) demonstrated a significant turnaround this earnings season, with shares rising approximately 25% following a strong Q3 performance that exceeded expectations despite a challenging macroeconomic environment [1] Company Performance - Fastly reported a strong Q3 beat-and-raise, which was unexpected given the current economic conditions [1] Market Reaction - The positive earnings report has led to Fastly's stock returning to positive territory, indicating renewed investor confidence [1]

Core Insights - Fastly, Inc. (FSLY) demonstrated a significant turnaround this earnings season, with shares rising approximately 25% following a strong Q3 performance that exceeded expectations despite a challenging macroeconomic environment [1] Company Performance - Fastly reported a strong Q3 beat-and-raise, which was unexpected given the current economic conditions [1] - The company's stock performance has returned to positive territory as a result of this earnings report [1] Analyst Background - Gary Alexander, who has extensive experience in covering technology companies and advising startups, has contributed insights on the themes shaping the industry [1]

Core Insights - Fastly's shares surged by 26.7% following the release of third-quarter financial results that exceeded expectations and provided a positive outlook [1][2] Financial Performance - Fastly reported total revenue of $158.2 million, marking a 15.3% increase year-over-year and surpassing analysts' estimates [2] - The company achieved an adjusted profit of $0.07 per share, significantly exceeding forecasts that anticipated a break-even result [2] - Cash flow improved to $18.1 million, a notable recovery from a loss in the same period last year [2] Future Outlook - Fastly issued optimistic guidance for the fourth quarter, projecting revenue above market expectations and raising its full-year forecast for adjusted earnings per share [2] Market Reaction - The volatility of Fastly's shares is highlighted, with 40 moves greater than 5% over the past year, indicating that the recent news has significantly influenced market perception [4] - The previous notable stock movement occurred six days prior, when shares gained 2.8% due to positive quarterly results from major tech companies [5] Industry Context - The broader tech market has been buoyed by strong performances from industry leaders such as Amazon and Apple, with Amazon Web Services reporting a 20% year-over-year revenue increase to $33 billion [6] - Cloudflare and Coinbase also reported impressive results, contributing to the overall positive sentiment in the tech sector [7]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of $158.2 million, exceeding the high end of guidance and marking a record high [6][16] - Gross margin improved to 62.8%, up 380 basis points sequentially, and operating income reached a record $11.6 million, significantly above guidance [6][19] - Free cash flow for the quarter was $18 million, demonstrating strong financial performance [6][21] Business Line Data and Key Metrics Changes - Network services revenue grew 11% year over year to $118.8 million, with healthy traffic levels contributing to this growth [16][17] - Security revenue increased 30% year over year to $34 million, representing 21% of total revenue, driven by an expanded security portfolio [17][19] - Other products revenue surged 51% year over year to $5.4 million, primarily from compute products [17] Market Data and Key Metrics Changes - The top 10 customers accounted for 32% of revenue, with revenue from customers outside the top 10 growing 17% year over year [17] - The trailing 12-month net retention rate improved to 106%, up from 104% in the prior quarter [17][18] Company Strategy and Development Direction - The company is focused on accelerating growth and innovation while maintaining operational discipline, raising full-year guidance for revenue and profitability [5][12] - Strategic initiatives include expanding the security portfolio and enhancing the customer experience through AI integration [8][11] - The company aims to increase international expansion, particularly in the APJ region, to capture more market opportunities [11][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and raised financial targets for the upcoming quarters [12][24] - The company anticipates continued revenue growth driven by successful cross-sell and upsell motions, with Q4 revenue guidance set at $159-$163 million [22][24] Other Important Information - The company discovered an error in the historical calculation of RPO, which has been recapped in the investor supplement, but this change will not impact customer growth focus [18] - The company is implementing a rigorous budgeting process to enhance financial discipline and ROI on spending [15] Q&A Session Summary Question: Concerns about delivery business expansion - Management noted that network services delivered 11% year-over-year growth, indicating ongoing strength in that segment [26] Question: One-time items in the quarter - Management clarified that the strong performance was due to a combination of successful cross-sell efforts and strong bookings linearity [29] Question: Strength in security portfolio - Management highlighted broad-based demand for new security offerings, including AI bot management and DDoS capabilities [30] Question: International expansion returns - Management emphasized that the international strategy focuses on sales coverage and is seeing early positive results, particularly in the APJ region [34][35] Question: Stability of security revenue - Management confirmed that the $34 million in security revenue is expected to continue, with no one-time revenue recognition impacting future quarters [37] Question: Net retention rate outlook - Management expressed optimism about improving the net retention rate in Q4, indicating potential for further growth [46]

Revenue and Growth - Total revenue for Q3 2025 was $158.2 million, representing a 15% year-over-year growth, with security revenue growing 30% year-over-year and accounting for 21% of total revenue[7] - Q4 2025 total revenue guidance is projected between $159.0 million and $163.0 million, with full year 2025 guidance between $610.0 million and $614.0 million[4] - Revenue is projected to grow to $158.2 million by Q3 2025, indicating a positive trend in sales[37] Customer Metrics - The enterprise customer count increased to 627 in Q3 2025, up 51 from Q3 2024, while total customer count decreased to 3,223, down 415 from Q3 2024[7] - Last 12-month net retention rate (LTM NRR) improved to 106% in Q3 2025 from 104% in Q2 2025[7] Financial Performance - Positive free cash flow of $18.1 million was generated in Q3 2025, compared to $7.1 million of negative free cash flow in Q3 2024[7] - Non-GAAP net income per share for Q4 2025 is expected to be between $0.04 and $0.08, with full year 2025 guidance between $0.03 and $0.07[4] - GAAP net loss per common share is projected to decrease to $0.20 in Q3 2025 from $0.32 in Q2 2024, showing improvement in financial performance[34] Operating Expenses - Operating expenses for Q4 2023 totaled $118,358,000, leading to a loss from operations of $42,584,000[33] - Operating expenses are expected to stabilize around $87.7 million by Q3 2025, showing a focus on cost management[37] Cash Flow and Investments - Free Cash Flow for Q4 2023 was $(21,904) thousand, improving to $18,091 thousand by Q3 2025[42] - Cash flows from operating activities showed a net cash provided of $5,220 thousand in Q4 2024, increasing to $28,924 thousand by Q3 2025[41] - Net cash used in investing activities was $(37,245) thousand in Q4 2023, with a recovery to $70,909 thousand by Q4 2024[41] Product Development and Innovation - The company launched several new products, including API Discovery and DDoS Precise Defense, enhancing security and operational efficiency[6] - Non-GAAP research and development expenses for Q1 2025 are estimated at $30,466, a rise from $27,123 in Q2 2024, indicating increased investment in innovation[34] Stock and Equity - Total stock-based compensation expense for Q4 2023 was $35,447,000, impacting overall operating results[33] - Stock-based compensation decreased from $35,447 thousand in Q4 2023 to $33,129 thousand in Q3 2025[41] - The weighted average diluted common shares are expected to increase to 161,229 by Q3 2025, up from 145,780 in Q1 2025, reflecting potential equity financing or stock option exercises[34] Sustainability and Corporate Responsibility - Fastly's Sustainability Dashboard was introduced, providing customers visibility into the environmental impact of their usage[7] Debt and Liabilities - The company reported a net gain on extinguishment of debt of $15,656,000 in Q4 2023[33] - The company experienced a significant cash outflow of $(113,606) thousand for debt extinguishment in Q4 2023[41] - Long-term debt remained stable, with only a slight decrease from $343,507 in Q4 2023 to $337,614 in Q4 2024[40]

Core Insights - Fastly, Inc. has reported an inducement award under NYSE Listing Rule 303A.08, indicating a strategic move to attract and retain talent within the company [1] Company Summary - The inducement award is part of Fastly's efforts to comply with NYSE regulations and enhance its workforce [1] - This action reflects the company's commitment to maintaining a competitive edge in the market by incentivizing key personnel [1]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Fastly, Inc. [1] Company Summary - Fastly, Inc. (NYSE: FSLY) is under scrutiny for possible misconduct by its leadership, which may affect shareholder interests [1] - Long-term shareholders of Fastly may have the opportunity to pursue corporate governance reforms and seek financial restitution [1]